Broadcom (NASDAQ:AVGO) has shown remarkable performance in recent years; however, it’s been nothing short of a rollercoaster ride. The company has seen its stock surge by 649% since the beginning of 2023, but it has also experienced more than nine drops of over 10%. Notably, the stock plunged 41% in early 2025, making it a risky endeavor for some investors.
Forgot Nvidia in 2009? This unusual signal is flashing again. In 2009, a “double down” signal appeared for a lesser-known chipmaker called Nvidia. Now, a company that is quite a bit smaller than Nvidia seems to be sending a similar “full conviction” signal.
While some investors are steering clear of stocks due to concerns about a slowdown in AI adoption, Wall Street remains optimistic about Broadcom’s growth potential.
Wall Street thinks Broadcom is a buy.
Over 93% of analysts covering Broadcom view it as a “buy” or “strong buy.” Despite a recent drop in stock price after a solid financial report, bullish sentiment persists among the top analysts.
Jefferies analyst Blaine Curtis has increased Broadcom’s price target from $500 to $550, indicating a potential 31% gain from Thursday’s closing price. He believes that, despite short-term fluctuations, Broadcom’s growth trajectory remains strong, especially with significant semiconductor deals with companies like Meta and OpenAI set for next year.
KeyBanc analyst John Bin also raised his price target for Broadcom, from $500 to $575, suggesting a 37% upside. He noted that, while investors anticipated a substantial increase in Broadcom’s full-year guidance, this didn’t materialize, possibly due to supply chain issues. Nevertheless, he thinks the conservative forecast of $100 billion in AI chip sales may underestimate future deployments slated for 2027.
Meanwhile, JPMorgan’s Harlan Sarr maintained an overweight (buy) rating and lifted his target from $500 to $580, pointing to a possible 38% return for investors. After reviewing Broadcom’s impressive contract figures, he anticipates the company’s fiscal 2028 revenue could near $300 billion—far exceeding the consensus estimate of $218 billion.
Is Wall Street right?
A notable theme in analyst commentary is the confidence in Broadcom’s long-term potential, despite those short-term expectations falling flat. I think that perspective makes sense; the company seems poised for a breakout with several promising products in the pipeline.
Currently, Broadcom is focusing on strategic partnerships with Alphabet and Anthropic, while expanding existing agreements with Meta. Many of these deals won’t show up in financial reports until late 2027 or early 2028, but combined, they should contribute significantly to growth.
Projections currently estimate Broadcom’s revenue could hit $106 billion in 2026, $166 billion in 2027, and $218 billion in 2028—indicating the potential for impressive growth. Some analysts even argue these estimates are overly cautious.
In terms of valuation, Broadcom’s stock is trading at less than 23 times next year’s expected sales. Furthermore, if you assess the price-to-earnings growth ratio (PEG)—which is often more insightful for high-growth companies—Broadcom’s PEG sits at a notably low 0.55, suggesting it’s undervalued.
Collectively, these insights imply that Broadcom has a promising future ahead, and many consider it a buy.
Should you buy Broadcom stock now?
Before making any investment in Broadcom, it’s worth considering the following points:
While the Motley Fool analysts have pointed out a range of promising stocks, Broadcom didn’t quite make the cut this time. Their top selections focus on long-term growth and have the potential for significant returns.
Past performance can be striking; for instance, early investors in notable companies like Netflix and Nvidia have seen substantial returns. People often pay attention to recommendations based on such successes. And, with a track record of outperforming the S&P 500 by nearly five times, stock advisory services have established a credible reputation.
